Notes to the consolidated and separate financial statementss

SEGMENTAL ANALYSIS

OVERVIEW AND DEFINITIONS

An operating segment is:

a component of an entity that engages in business activities from which it may earn revenues
the operating results of which are regularly reviewed by the Group's chief operating decision maker to make decisions about resources to be allocated and to assess its performance, and
for which financial information is available.

The Group's identification of its segments and the measurement of segment results are based on the Group's internal management reporting used for day-to-day decision-making and reviewed by the chief executive officer (who is the Group's chief operating decision maker). The segments have been identified according to their location, other than assets held-for-sale. The primary measures of segment performance are net operating income and distributable income.

Intersegment revenues and transfers are accounted for as if the transactions were concluded with third parties at arm's length market prices.

The segments are supported by the Group head office, which provides support in the areas of finance, legal, human resources, governance and compliance, risk management and information technology.

Properties (of any previous segment) that have been classified as held-for-sale according to IFRS 5: Non-current assets held-for-sale are reported under their geographic segments. There is one property in this segment (2019: one).

The Group comprises of the following business segments and sectors:

Business segment	Description and basis of segmentation	Sector
South Africa	The SA portfolio comprises all South African shopping malls and offices irrespective of size. There are nine centres in this segment (2019: nine). Included in this segment are the combined results of the various support services provided to the Group from South Africa including: Group finance, Stratco, Group asset management and development, human resources, legal and compliance, investor relations, Group marketing and Group facilities management.	SA
Eastern Europe	The EE portfolio comprises interests in dominant shopping centres in the Balkan region of Eastern Europe held through the Group's 60% interest in Hystead. There are six properties in this segment (2019: six).	EE
Sub-Saharan Africa	The SSA portfolio comprises interests in shopping centres in western Africa, excluding South Africa, held through Hyprop Mauritius, a wholly owned subsidiary. The property held-for-sale forms part of the SSA portfolio.	SSA

Segmental analysis – profit or loss

South Africa

Eastern Europe

Sub-Saharan
Africa

Group

June 2020
R'000

Revenue

2 890 219

–

212 123

3 102 342

Rental and other lease income

2 078 212

–

182 910

2 261 122

Straight-line rental income accrual

125 927

–

(7 641)

118 286

Recoveries

686 080

–

36 854

722 934

Impairment of trade receivables

(35 786)

–

(41 896)

(77 682)

Property expenses

(1 069 565)

–

(70 156)

(1 139 721)

Net property income

1 784 868

–

100 071

1 884 939

Other operating income ⁽¹⁾

22 705

215

(2 049)

20 871

Other operating expenses

(87 933)

–

(1 197)

(89 130)

Operating income

1 719 640

215

96 825

1 816 680

Net interest

(357 028)

–

(191 367)

(548 395)

Interest income

55 105

–

33 892

88 997

Interest expense

(412 133)

–

(225 259)

(637 392)

Net operating income

1 362 612

215

(94 542)

1 268 285

Guarantee fee income

–

22 111

–

22 111

Dividends received

–

120 630

–

120 630

Net income/(loss) before fair value adjustments

1 362 612

142 956

(94 542)

1 411 026

Changes in fair value

(4 540 750)

297 863

(394 041)

(4 636 928)

Impairment of loans receivables

–

(289 974)

(289 974)

(Loss)/Profit before taxation

(3 178 138)

440 819

(778 557)

(3 515 876)

Taxation

(7 637)

–

487

(7 150)

(Loss)/Profit for the year

(3 185 775)

440 819

(778 070)

(3 523 026)

⁽¹⁾	R215 000 (2019: R4 284 000) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI.

Calculation of distributable income

Net income/(loss) before fair value adjustments

1 362 612

142 956

(94 542)

1 411 026

Adjusted for:

(175 049)

–

22 064

(152 985)

Straight-line rental income accrual

(125 927)

–

7 641

(118 286)

Non-controlling interest

–

21 449

21 449

Net interest adjustments

–

(4 036)

(4 036)

Other fair value adjustments – Edcon

(45 172)

–

(45 172)

Gruppo non-remittable income

–

(5 039)

(5 039)

Capital items for distribution purposes

(3 950)

–

2 049

(1 901)

Distributable income

1 187 563

142 956

(72 478)

1 258 041

South Africa

Eastern Europe

Sub-Saharan
Africa

Group

June 2019
R'000

Revenue

3 003 847

–

214 001

3 217 848

Rental and other lease income

2 372 402

–

194 748

2 567 150

Straight-line rental income accrual

(81 399)

–

(6 488)

(87 887)

Recoveries

712 844

–

25 741

738 585

Impairment of trade receivables

(23 712)

–

(23 340)

(47 052)

Property expenses

(1 068 708)

–

(63 294)

(1 132 002)

Net property income

1 911 427

–

127 367

2 038 794

Other operating income ⁽¹⁾

26 544

4 284

–

30 828

Other operating expenses

(71 513)

–

(915)

(72 428)

Operating income

1 866 458

4 284

126 452

1 997 194

Net interest

(239 190)

–

(221 965)

(461 155)

Interest income

74 067

–

81 976

156 043

Interest expense

(313 257)

–

(303 941)

(617 198)

Net operating income

1 627 268

4 284

(95 513)

1 536 039

Guarantee fee income

–

40 542

–

40 542

Dividends received

–

221 190

–

221 190

Net income/(loss) before fair value adjustments

1 627 268

266 016

(95 513)

1 797 771

Changes in fair value

(209 128)

(85 229)

(292 726)

(587 083)

Profit on disposal of investment property

2 825

–

2 825

Impairment of loans receivables

–

(1 350 727)

Other impairments

–

(29 964)

Derecognition of financial guarantees

–

185 686

–

185 686

Profit before taxation

1 420 965

366 473

(1 768 930)

18 508

Taxation

(1 730)

–

94 758

93 028

Profit for the year

1 419 235

366 473

(1 674 172)

111 536

⁽¹⁾	R215 000 (2019: R4 284 000) relates to foreign exchange gains realised on dividends from Hystead and guarantee fee income from PDI.

Calculation of distributable income

Net income/(loss) before fair value adjustments

1 627 268

266 016

(95 513)

1 797 771

Adjusted for:

67 743

–

37 154

104 897

Straight-line rental income accrual

81 399

–

6 488

87 887

Non-controlling interest

–

30 959

Taxation paid

–

(427)

Net interest adjustments

–

134

Other fair value adjustments - Edcon

(12 705)

–

(12 705)

Capital items for distribution purposes

(951)

–

(951)

Distributable income

1 695 011

266 016

(58 359)

1 902 668

Segmental analysis – financial position

	South Africa	Eastern Europe	Sub-Saharan Africa	Group
	June 2020 R'000	June 2020 R'000	June 2020 R'000	June 2020 R'000
Assets
Non-current assets	24 657 174	532 972	–	25 190 146
Current assets	881 147	22 759	766 734	1 670 640
Assets classified as held-for-sale	–	–	2 098 918	2 098 918
Total assets	25 538 321	555 731	2 865 652	28 959 704
Liabilities
Non-current liabilities	4 403 050	127 066	–	4 530 116
Current liabilities	1 749 285	–	2 049 629	3 798 914
Liabilities associated with assets classified as held-for-sale	–	–	1 359 216	1 359 216
Total liabilities	6 152 335	127 066	3 408 845	9 688 246

	June 2019 R'000	June 2019 R'000	June 2019 R'000	June 2019 R'000
Assets
Non-current assets	28 639 145	237 291	–	28 876 436
Current assets	1 151 002	19 262	1 559 025	2 729 289
Assets classified as held-for-sale	–	–	2 047 847	2 047 847
Total assets	29 790 147	256 553	3 606 872	33 653 572
Liabilities
Non-current liabilities	3 796 753	110 401	2 671 833	6 578 987
Current liabilities	1 461 881	–	22 600	1 484 481
Liabilities associated with assets classified as held-for-sale	–	–	1 098 300	1 098 300
Total liabilities	5 258 634	110 401	3 792 733	9 161 768

Notes to the consolidated and separate financial statements | C. Segmental analysis

Notes to the consolidated and separate financial statements | C. Segmental analysis

Notes to the consolidated and separate financial statements | C. Segmental analysis

Notes to the consolidated and separate financial statements | C. Segmental analysis

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